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Can Darrell Issa meet Barack Obama's standard?

The approach taken to date by Chairman Darrell Issa falls short, writes Elijah Cummings.
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By REP. ELIJAH CUMMINGS | 2/10/11 4:35 AM EST

As part of a broad effort to promote economic growth, I support a comprehensive review of federal regulations to make them more effective, while protecting the health and safety of the American people.

This review should include several basic elements — examining both costs and benefits; developing conclusions based on solid data, and seeking input from a wide variety of sources.

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POLITICO 44

President Barack Obama took a good first step when he issued an executive order on Jan. 18 requiring agencies to examine the costs and benefits of regulations to the overall economy, small businesses and U.S. workers and families. My hope is that the House Oversight Committee can contribute constructively to this process.

Unfortunately, the approach taken to date by Chairman Darrell Issa (R-Calif.) falls short of this standard. He sent letters to approximately 170 select industry groups and other entities, and we now have their responses. Though they include some worthwhile proposals, we need to take three key steps for this effort to be effective.

First, we need to expand the scope of the inquiry.

To date, the committee has requested information only about the costs of regulation and not the benefits. This is a fundamental point: We cannot do a legitimate cost-benefit analysis by collecting information about the costs alone.

The committee also sought input primarily from industry groups seeking to repeal regulations. No letters were sent, for example, to the Council of Institutional Investors, which supported financial protections in the Dodd-Frank Wall Street Reform bill. Or to American Businesses for Clean Energy, which represents more than 60,000 small and large U.S. companies that believe reducing pollution is a “wise investment for long-term economic growth.”

Second, we need to base our conclusions on facts instead of rhetoric.

There have been many statements recently attributing job losses to over-regulation. But the country faced this economic crisis primarily because the financial industry was inadequately regulated for decades. There was deficient regulation of derivatives, credit rating agencies and mortgage companies. The economy lost more than eight million jobs as a result.

Former Federal Reserve Chairman Alan Greenspan testified before our committee that his theory of allowing corporations to regulate themselves was a mistake. That’s why passing the Wall Street Reform bill last year was so critical.

Rather than waiting for responses to his letters, however, Issa joined other Republicans on Jan. 5 to introduce legislation to repeal the entire Wall Street Reform bill — creating an unfortunate impression that the objective behind his letters to industry was predetermined.

Many corporations that submitted responses have had skyrocketing profits over the past few years. From 2009 to 2010, ConocoPhillips’ profits soared from $4.4 billion to $11.4 billion, Boeing’s profits increased from $1.3 billion to $3.3 billion, American Express’ profits increased from $2.1 billion to $4 billion and Chevron’s profits increased from $10.5 billion to an astonishing $19 billion.

Yet many answers included proposals that have little to do with creating jobs. Companies proposed eliminating provisions in the Wall Street Reform bill that require chief executive officers to disclose their compensation; give shareholders greater input on executive pay and golden parachutes; allow the return of bonuses when corporate earnings are inflated; encourage whistleblowers to report abuses to the Securities and Exchange Commission, and require oil companies to disclose payments to foreign governments.

In addition to taking these three common-sense steps, our committee should focus on broader proposals to promote economic growth.

For example, on Jan. 26, the presidents of the U.S. Chamber of Commerce, Thomas Donohue, and the AFL-CIO, Richard Trumka, issued a rare joint statement. They applauded the president’s State of the Union proposal to create jobs by investing in our nation’s infrastructure.

“Whether it is building roads, bridges, high-speed broadband, energy systems and schools,” Donohue and Trumka wrote, “these projects not only create jobs and demand for businesses, they are an investment in building the modern infrastructure our country needs to compete in a global economy.”

These are the kinds of bipartisan efforts our committee — and Congress —should support. Working together, we can help create jobs and keep the economy moving in the right direction while protecting the health, safety, and welfare of all Americans.

Rep. Elijah Cummings (D-Md,) is the ranking member on the House Committee on Oversight and Government Reform.

Darrell Issa was a odd choice for oversight. His checkered past is filled with several arrests on charges stemming from weaponds possession to suspicion of arson in an insurance fraud case and grand theft auto. Although never convicted it''s too ironic that someone can be so often suspected of something without reason. If this is the standard bearer for the Republicans God help us all.

These are the kinds of bipartisan efforts our committee — and Congress —should support. Working together, we can help create jobs and keep the economy moving in the right direction while protecting the health, safety, and welfare of all Americans.

Government cannot CREATE jobs - unless it is within the government unit itself. Government can KILL job creation with excessive rules and regulations - it's called "OVERKILL". Any "jobs" that the government creates costs the taxpayers more to pay for those jobs and all related overhead and perpetual "training" expenses - call them conferences in luxury resorts.

President Barack Obama took a good first step when he issued an executive order on Jan. 18 requiring agencies to examine the costs and benefits of regulations to the overall economy, small businesses and U.S. workers and families. My hope is that the House Oversight Committee can contribute constructively to this process.

Since WHEN did the term "OVERSIGHT" mean merely costs and benefits and recommendations? This is the exact reason WHY all those committee hearings held in the past were just a waste of time and taxpayer money. The House members have the direct responsibility to ensure that every taxpayer penny spent is spent wisely and honestly. When fraud is uncovered, the guilty MUST be held accountable - to the taxpayers. That money MUST be recovered.

Every no-bid contract issued needs to be examined with a microscope. The relationship between any contractor and any government critter needs to be investigated. Kickbacks, whether blatant or via family members, staff and friends, need to be uncovered and someone held responsible.

Cummings is being extremely shortsighted. Ignoring the present and past deeds does NOT satisfy the requirement of OVERSIGHT. In the real world, we call that AUDITS. Perhaps you should have the IRS agents TRAIN YOU to perform your own job. They have a knack of "sniffing" out more money from the taxpayers - possibly something they learned from the Elliot Ness days and the techniques the Mob used in business.

What Cummings and Obama are suggesting do be done, should have been performed BEFORE ANY laws and regulations are implemented. Not AFTER.

There are a great many Democrats (well maybe one or two) that on rare occasion make sense. Cummings has yet to draw that breath. A quintessential career liberal and professional politician that has no clue as to how to get anything accomplished even though that's his job description.

If you really want Republican cooperation, really really wanted it, you might begin by bringing something to the table other than rhetoric and discord.

We do NOT want him to meet Obama's standard. We want change and abolishment of regulations that strangulate all business. Yes, start with EPA, just shut it down and the same with NLB (National Labor Board), kill the monster HCR and we will be home and have lot's of new jobs.

To date, the committee has requested information only about the costs of regulation and not the benefits. This is a fundamental point: We cannot do a legitimate cost-benefit analysis by collecting information about the costs alone.

Issa, as head of the legislative committee on oversight, wants to discover where the money went. Hundreds of billions of tax dollars. Obama is stonewalling. Cummings is obstructing by increasing the complexity of the requests to delay the responses and confuse the results. Cummings is free to request whatever he wants, Cummings should not be allowed to diddle Issa's reasonable requests for an accounting to the oversight committee on what was spent.

Side with whoever you want, but I would like to see where the money went. Then we can focus on the justifications for the spending that seems unreasonable.

I THINK THIS ENTIRE ARTICLE IS MISSING THE POINT. REGULATIONS HAVE A DIRECT EFFECT ON JOB NUMBERS. YOU CAN HAVE A GREAT PROFIT IN YOUR BUSINESS, BUT THAT DOESN'T MEAN YOU HAVE THE WORK FORCE YOU DID 5 YEARS AGO. REGULATIONS ARE THE REASON THIS COUNTRY SENDS MILLIONS OF JOBS OFFSHORE. ALONG WITH REGULATIONS INFLATION PLAYS A LARGE PART IN REASON YEARS, HAS ANYONE NOTICED THAT CANADA'S DOLLAR IS EQUAL TO THE US $? DOLLAR PROFITS ARE ONE THING, PERCENTAGE PROFITS ARE TRUE INDICATORS OF HOW WELL A BUSINESS IS DOING. THE U.S. STOCKMARKETS LOOK GREAT UNTIL YOU REALIZE THAT THE ONLY REASON IT UP IS BECAUSE OF THE SHRINKING BUCK. MY BUSINESS GETS A VISIT FROM SOMEONE ON A GOVT. PAYROLL AT LEAST ONCE A MONTH ie(CITY,COUNTY,STATE, OR FED.). THEY NEVER FIND ANYTHING WRONG, BUT THEY WORK HARD AT TRYING TO FIND SOMETHING TO JUSTIFY THERE VISIT. ALL YOU HAVE TO DO TO SEE THE PATH THE FED'S ARE HEADED FOR IS TO LOOK AT THE FLIGHT OF BUSINESS OUT OF CALIF.

I THINK THIS ENTIRE ARTICLE IS MISSING THE POINT. REGULATIONS HAVE A DIRECT EFFECT ON JOB NUMBERS. YOU CAN HAVE A GREAT PROFIT IN YOUR BUSINESS, BUT THAT DOESN'T MEAN YOU HAVE THE WORK FORCE YOU DID 5 YEARS AGO. REGULATIONS ARE THE REASON THIS COUNTRY SENDS MILLIONS OF JOBS OFFSHORE. ALONG WITH REGULATIONS INFLATION PLAYS A LARGE PART IN REASON YEARS, HAS ANYONE NOTICED THAT CANADA'S DOLLAR IS EQUAL TO THE US $? DOLLAR PROFITS ARE ONE THING, PERCENTAGE PROFITS ARE TRUE INDICATORS OF HOW WELL A BUSINESS IS DOING. THE U.S. STOCKMARKETS LOOK GREAT UNTIL YOU REALIZE THAT THE ONLY REASON IT UP IS BECAUSE OF THE SHRINKING BUCK. MY BUSINESS GETS A VISIT FROM SOMEONE ON A GOVT. PAYROLL AT LEAST ONCE A MONTH ie(CITY,COUNTY,STATE, OR FED.). THEY NEVER FIND ANYTHING WRONG, BUT THEY WORK HARD AT TRYING TO FIND SOMETHING TO JUSTIFY THEIR VISIT. ALL YOU HAVE TO DO TO SEE THE PATH THE FED'S ARE HEADED FOR IS TO LOOK AT THE FLIGHT OF BUSINESS OUT OF CALIF.

Rep. Cummings needs to retake his course on constitutional fundamentals. The founders developed a system of "checks and balances" in order to safeguard us against corruption of the ruling class. It is the responsibility of The House and Senate to hold the executive branch accountable. This is something the democrats failed to do these last two years. The American people are now tired of the games and the corruption. This administration has made several constitutionally questionable moves that need to be investigated.

But the corrupt and hypocritical Rep. Cummings didn't seem so opposed to hearing and investigations when Pres. Bush was in office. I wonder why..........

Darryll Issa is a corporate tool. His time before campaigning for political office was spent as a lobbyist for corporations. Now, he's still a lobbyist and his constituents will not see the benefits of this lobbying...but, the corporations will.

The financial industry is one of the most regulated on the planet. We had a massive meltdown because of easy credit (thanks Mr. Greenspan and Bernake!), the Community Reinvestment Act (thanks Barney!), a TOTAL lack of consequences for the idiots who sliced and diced all of these mortages into CDS's and CDO's (thanks Goldman and JP Morgan!) and a whole bunch of greedy and stupid people buying overpriced real estate (thanks morons!). What we need, Mr. Cummings, is for government to get the hell out of the moprtgage business and for moral hazard to return to the markets. You lose your butt, you're broke, Jack. Too bad. Pay your debts.

What a bunch of crap. The job of the House Committee on Oversight and Government Reform is not to "Create jobs" Mr. Cummings, it's to make sure that the obumbles administration is following the law, and Mr. Issa is making sure that this crooked administration gets investigated after two years of the Democrats looking the other way and sweeping the scandals under the rug.

Elijah is trying an end around play here. If the Obama admin has nothing to hide everything will be fine. Elijah complains about corps. holding back billions and not creating jobs- businesses are holding funds in reserve because they are uncertain about new taxes and regulations. By the way, when you think a corp. highest priority should be to make jobs appear, needed or not, it's called SOCIALISM. stooge

In addition to taking these three common-sense steps, our committee should focus on broader proposals to promote economic growth.

TeamPOLITICO: Feb. 10, 2011 - 4:35 AM EST

Many corporations that submitted responses have had skyrocketing profits over the past few years. From 2009 to 2010, ConocoPhillips’ profits soared from $4.4 billion to $11.4 billion, Boeing’s profits increased from $1.3 billion to $3.3 billion, American Express’ profits increased from $2.1 billion to $4 billion and Chevron’s profits increased from $10.5 billion to an astonishing $19 billion.